Strategy Jumps 16% as SEC Exemption Lifts Crypto

• Strategy shares climbed 16.4% Friday to close at $153.92.
• The rally followed an SEC exemption supporting tokenized trading in U.S.-listed stocks.
• Trading volume reached 54 million shares, nearly twice the one-month average.
• Strategy holds approximately 845,050 Bitcoin in its corporate treasury.
• Despite gaining 35% over the past month, the stock remains well below its 52-week high of $365.21.

Strategy Inc. shares surged Friday as cryptocurrency-related stocks rallied following a regulatory development that could expand trading in tokenized securities.

The stock advanced $21.67, or 16.4%, to close at $153.92 after the Securities and Exchange Commission approved a temporary “Innovation Exemption.” The measure allows certain trading venues and liquidity providers to facilitate transactions involving tokenized versions of U.S.-listed stocks.

Strategy traded as high as $154.02 during the session, up from a previous close of $132.25. Volume reached approximately 54 million shares, nearly double its one-month average.

The rally pushed the stock roughly 40% above its 50-day moving average of $109.61 and 12% above its 200-day moving average of $137.13. Strategy shares have gained more than 35% over the past month but remain about 58% below their 52-week high of $365.21.

Strategy operates as an enterprise software company and Bitcoin treasury vehicle. The company holds approximately 845,050 Bitcoin, financing its cryptocurrency investments through common stock, debt and preferred securities.

The company recently paused additionalBitcoin purchases. From Sept. 8 through Sept. 13, Strategy reported no Bitcoin transactions or sales through its at-the-market stock program. It instead used $139.3 million in cash to repurchase STRC preferred shares.

Strategy resumed purchasing Bitcoin in late August after an approximately two-month pause. Management has also outlined a more flexible capital-allocation framework that includes Bitcoin purchases, preferred dividends, debt reduction, share repurchases and maintaining cash reserves.

Investor opinion remains divided. Supporters view Strategy as a leveraged vehicle for gaining exposure to Bitcoin and potentially building a broader digital-credit business. Critics point to shareholder dilution, preferred-security costs, substantial liabilities and the company’s continued dependence on capital markets.

The stock carries a market capitalization of approximately $50.8 billion. Short interest represents about 9% of its publicly traded shares.

Source: www.citybiz.co